DESIGN AND DEVELOPMENT OF AN AI-BASED SMART ACCOUNTING SYSTEM FOR OPTIMIZING INTERNAL CONTROL PROCESS: A CASE STUDY AT PT DIWANGKARA WIHAYA NUSANTARA

Abstract

This study aims to design and develop an AI-based smart accounting system to optimize internal control processes within small and medium enterprises (SMEs), using PT Diwangkara Wihaya Nusantara as a case study. Employing a Design Science Research (DSR) approach, the study developed an artifact in the form of an AI-assisted accounting prototype. Data were collected through semi-structured interviews, direct observation, and document analysis involving accounting staff and managers, followed by performance evaluation through scenario simulations. The analysis compared manual accounting using Google Sheets with the AI-based system based on three indicators: journal entry processing time, classification error rate, and financial report compilation time. The findings showed a 71.1% reduction in processing time, an 82.9% decrease in journal classification errors, and a 66.1% improvement in reporting speed. Qualitative results further indicated increased accuracy, transparency, and managerial confidence in financial reporting. The study concludes that the proposed system strengthens both preventive and detective controls, in line with the COSO framework, and enhances decision-making efficiency. Future research is recommended to expand testing with larger datasets and integrate adaptive machine learning for predictive control and scalability.